COVID-19 Business Support

Business Support Information

Up To Date Information For Businesses Effected By Coronavirus.

Support For The Self Employed

A Grant Is Available Through The Self-employment Income Support Scheme.

If you are self-employed or a member of a partnership and have lost income due to coronavirus you may be eligible to claim under this scheme.

How To Apply

HMRC began contacting self-employed taxpayers whom they believe are eligible for the scheme on 04.05.2020 inviting them to apply online when the scheme will be opens for applications on the 13th of May

If HMRC contact you this doesn’t mean that you are definitely eligible for the grant. HMRC will use the information which they have about your profits for the years to 2018/19. However, to You You must also have traded in 2019/20 AND be intending to trade in 2020/21. You can check your eligibility online here

How Much You’ll Get

You’ll get a taxable grant which will be 80% of the average profits from three tax years (where applicable):

2016 to 2017

2017 to 2018

2018 to 2019

To work out the average HMRC will add together the total trading profit for three tax years and divide by three (where applicable), and use this to calculate a monthly amount.

The grant is available up to a maximum of £2,500 per month for three months and will be paid directly into your bank account, in one instalment.

Who Can Apply?

You can apply if you’re a self-employed individual or a member of a partnership and you:

have submitted your Income Tax Self Assessment tax return for the tax year 2018-19

traded in the tax year 2019-20

are trading when you apply, or would be except for COVID-19

intend to continue to trade in the tax year 2020-21

have lost trading/partnership trading profits due to COVID-19

Your self-employed trading profits must also be less than £50,000 and more than half of your income must come from self-employment.

This is determined by at least one of the following conditions being true:

having trading profits/partnership trading profits in 2018-19 of less than £50,000 and these profits constitute more than half of your total taxable income

having average trading profits in 2016-17, 2017-18, and 2018-19 of less than £50,000 and these profits constitute more than half of your average taxable income in the same period

If you started trading between 2016-19, HMRC will only use those years for which you filed a Self-Assessment tax return.

If you have not submitted your Income Tax Self-Assessment tax return for the tax year 2018-19, you must do this by 23 April 2020.

HMRC will use data on 2018-19 returns already submitted to identify those eligible and will assess any late returns filed before the 23 April 2020 deadline in the usual way.

Support For Small Business Owners

Small Business Grant Scheme.

This scheme is for businesses that pay little or no business rates. This will provide a one-off grant of £10,000 to eligible businesses to help meet their ongoing business costs.

The government have advised that they will provide this funding for local authorities to support small businesses that already pay little or no business rates because of small business rate relief (SBRR), rural rate relief (RRR) and tapered relief.

Who Is Eligibile?

Your business is eligible if:

your business is based in England

you are a business that occupies property

you are receiving small business rate relief or rural rate relief as of 11 March

How To Access The Scheme

You do not need to do anything as your local authority will write to you if you are eligible for this grant.

Any enquiries on eligibility for, or provision of the reliefs and grants should be directed to the relevant local authority. You can find your local authority Here.

Retail, Hospitality and Leisure Grant Fund

The Retail and Hospitality Grant Scheme provides businesses in the retail, hospitality and leisure sectors with a cash grant of up to £25,000 per property.

Businesses in these sectors with a property that has a rateable value of over £15,000 and less than £51,000 may be eligible for this grant.

Who Is Eligible?

You are eligible for the grant if:

your business is based in England

your business is in the retail, hospitality or leisure sector

your business has a rateable value of under £51,000

Properties that can benefit from the relief are occupied properties that are wholly or mainly being used:

as shops, restaurants, cafes, drinking establishments, cinemas and live music venues

for assembly and leisure

as hotels, guest and boarding premises and self-catering accommodation

How To Access The Grant

Similarly to the small business grant scheme you do not need to do anything.

Your local authority will write to you if you are eligible for this grant. Any enquiries on eligibility for, or provision of, the reliefs and grants should be directed to your local authority.

Find more information about the grant funding schemes, including the small business grant fund and retail, hospitality and leisure grant fund here.

Information updated 01.04.2020

Support For Employers & Employees

Coronavirus Job Retention Scheme – Furloughed Workers.

The government have advised that the Coronavirus Job Retention Scheme will be accessible to employers whose operations have been severely affected by coronavirus (COVID-19).

This is a temporary scheme open to all UK employers for at least three months starting from 1 March 2020.

By accessing this scheme, employers will be able to use a portal to claim for 80% of furloughed employees’ (employees on a leave of absence) usual monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that wage.

The scheme is available online and can be accessed here. Any UK organisation with employees can apply, including:

businesses

charities

recruitment agencies (agency workers paid through PAYE)

public authorities

Employers can use this scheme anytime during this period.

The scheme is open to all UK employers that had created and started a PAYE payroll scheme on 28 February 2020.

To find out more about the Coronavirus Job Retention Scheme click here

Coronavirus VAT Deferment

Support For Businesses By Deferring VAT Payments

Temporary changes to VAT payments due between the 20th of March 2020 and the 30th of June 2020 are now in place.

To help businesses affected by the coronavirus a three-month VAT payment deferment was announced on the 20th March. This means that over two million businesses can defer any VAT payments which were due to be paid between the 20th of March and 30th of June 2020.

There will be no interest or default surcharges due on deferred VAT and any payments which are deferred must be paid on or before 31 March 2021.

All VAT credits and refunds will be paid as normal during the period.

The deferral also applies to annual accounting advanced payments and payments on account, normally due on the last day of the second and third months in any VAT quarter for affected businesses. Consequently, payments on accounts that are due to be paid 31st March, 30th April, 31st May and 30th June can be deferred.

There is also help available to business whom are unable to pay their VAT from previous periods due to COVID-19. HMRC’s Time To Pay system has been enhanced and a dedicated helpline is available.

If you cannot pay your tax bill because of coronavirus then contact the HMRC coronavirus helpline on 0800 024 1222 as soon as possible.

Who Is Eligible?

Almost all UK businesses that pay VAT are eligible for the scheme. This includes foreign businesses with a UK VAT registration.

However, any businesses filing for B2C electronic services sales or using mini one-stop-shop returns (MOSS) are not included in the scheme. They will have to pay the VAT due as normal.

How To Access The Scheme

The VAT tax holiday will be automatic and taxpayers do not have to notify HMRC if they intend to take advantage of the payment deferment scheme. However, despite payments being deferred, VAT returns must still be submitted as normal on the date which they are due.

Direct Debit Payments

Despite the deferment scheme being automatic, businesses whom currently pay their VAT via direct debit must take action now.

HMRC have advised that they are unable to stop existing direct debit payments from going ahead.

Businesses must take immediate action and contact their banks to cancel the facility or can cancel it via on line banking if registered, otherwise the VAT will automatically be withdrawn.

MTD For VAT

HMRC has now postponed phase two of Making Tax Digital for VAT. This means that the new rules on maintaining digital links from original transaction to tax return will not be enforced until 1 April 2021. Businesses now have until their first VAT return period starting on or after 1 April 2021 to put digital links in place.

However, the regular VAT penalty regime for missing any Making Tax Digital obligations will still come into play on the 1st of April 2020 when the one-year soft-landing phase of MTD ended.

Information updated 07.04.2020

Richard Dehn – Partner, Bury Road Off Licence

K A Farr & Co are always totally approachable with any questions or problems that may pop up……and…….they always seem to come up with a sensible answer. Over the years I have never been left wondering about an accounting or tax issue, I just get on the phone straight away. They are an invaluable business tool to be used to make the day to day running of your business so much easier.

Sherie Halsall – Peter Halsall Removals and Storage Ltd, Southport

We wanted an accountant with a good reputation to give us accounting support. Everything to date has been fabulous!

Paul Hawkins – Hawkins Asset Management Limited

Helpful and informative at the start of the relationship

Martin Jackson – Roxby Training Solutions Ltd

Our business partner has used KA Farr & Co for many years and has always been very satisfied with the service. Personally, I have always found KA Farr & Co helpful and value their professional opinion

Mr and Mrs Rose – The Edendale House Hotel

I have used KA Farr ever since I started my business 17 years ago. They are extremely helpful and reliable. Our relationship is like having a good friend on your side. Everyone is helpful, knowledgeable and always do what they say they will when they say they will. Thank you so much.

Dennis Gregory – Bryden International Limited

What I like about Farr’s is that they give friendly, easily understood advice. You make us feel that you are very much part of our business, and you share in our success or failure. Your new website and letterheads have moved you into the “modern” era. I like them. I would mark you a 5 on the Richter scale for good dealing experience.

Dave Halton – Merseyside

Kath is local, friendly, approachable and down to earth. She provides an excellent service and after more than 20 years why would I go anywhere else?

David Deveney – Energyfront Limited, Merseyside

Simply a very professional practice. You [Kath] and your team give consistently good service and have done so throughout the years. All my business and personal accounting needs are met.

Paul Bell – Director, P.R.B. Consulting Ltd

I chose K.A.Farr & Co as my company’s accountancy advisor because they are a well established and highly respected local firm. I’ve always found them to provide me with a relaxed and fairly priced, but thoroughly professional, service – allowing me to concentrate on running my business.

Joanne Hilliard – Office Manager, Globe Heat Treatment Ltd

Good service, professional and reputable accountants. We receive good advice on all matters and rate their service 5 out of 5!

Julie Rhodes – Director, Tim Rhodes Stone Solutions Ltd

On recommendation we used KA Farr & Co to register and set up our Limited company. We had minimal knowledge or experience in running our own business but were given clear explanations and advice on all aspects including personal tax, corporation tax, VAT registration and Payroll. Being inexperienced, the advice, guidance and on going efficient service provided has been of great benefit to us, giving us total peace of mind that our tax liabilities are taken care of.

Dave Sumpter – Envogen UK Limited, Knowsley, Merseyside

Mr Zavieh – Delizzis, Southport

Loraine – Aroma Leisure Limited

They are always helpful and provide advice when I require it.

Sue Siddeley – Owner, Sion Properties, Southport

I was recommended to the company about 15 years ago. Kath has always looked after our business interests and I would certainly recommend her. I’ve even got my Dad to leave his long standing accountant and move to Kath!

James Redmond – Sole Trader, Builder

At first the company was recommended to me and over the last 8 years I’ve always had 1st Class Service. Very efficient, great service, friendly and reliable.

Business Loans

Corona Virus Business Interruption Loan Scheme.

This temporary scheme aims to support SMEs with access to loans, overdrafts, invoice finance and asset finance of up to £5 million for up to 6 years.

The government has advised that they will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees. This will mean that smaller businesses will benefit from no upfront costs and lower initial repayments.

“The government will provide lenders with a guarantee of 80% on each loan (subject to pre-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. The scheme will be delivered through commercial lenders, backed by the government-owned British Business Bank.”

Eligibility

You are eligible for the scheme if:

your business is UK based, with turnover of no more than £45 million per year

Eligibility

“Companies – and their finance subsidiaries – that make a material contribution to the UK economy.”

The Bank Of England advise that “firms that meet this requirement would normally be: UK incorporated companies, including those with foreign-incorporated parents and with a genuine business in the UK; companies with significant employment in the UK; firms with their headquarters in the UK. We will also consider whether the company generates significant revenues in the UK, serves a large number of customers in the UK or has a number of operating sites in the UK.

How To Access The Scheme

The scheme is now available for applications, and more information is available from the Bank of England.

Information updated 26.03.2020

Our services

We offer preparation of accounts, personal and company tax and business planning.

Our services also include secretarial support, payroll/CIS services, bookkeeping, VAT and company auditing.